Public Policy contacts:
Paul Glass glass@ohiorealtors.org
Scott Williams williams@ohiorealtors.org

OAR’s Public Policy Group are currently working on the following issues:

Ohio Municipal Income Tax Reform…The time for change is now!
Are you frustrated with Ohio’s current municipal tax system? The Ohio Society of CPA’s top legislative priority this year is achieving meaningful, common sense reforms to Ohio’s municipal income tax system.

OSCPA organized the Municipal Income Tax Uniformity Coalition, a partnership of 17 organizations in Ohio, including OAR, driving reform of Ohio’s municipal income tax code. Together, they represent a large share of the business and individual taxpayers who are the lifeblood of Ohio’s economy and are impacted most by the current structure.

OSCPA has testified that the Ohio municipal tax system remains overly burdensome for taxpayers, and that change is sorely needed. You can take action now! How you can help!

• Talk to your clients and employer.
• Explain the cost and burden of filing multiple returns.
• Point out the benefits of uniform filing definitions.
• Contact your legislators.
• Contact Scott Williams or Paul Glass the OSCPA’s Governmental Affairs team at government@ohio-cpa.com or 800.686.2727 to learn how you can get involved and drive needed reform

Pre-licensure Online Education
a. Would change the license law to permit offering the option of providing all aspiring real estate salespersons pre-licensure courses on-line.
OAR Position: SUPPORT
Rationale: Providing an option to take real estate salesperson pre-licensure courses on-line has the potential of increasing access to the courses for candidates.  The candidates for the real estate broker’s license already can take the required pre-licensure courses on-line.  In addition, thirty-eight states have this option and these states indicate there is no difference in the effectiveness of classroom vs. on-line pass/fail rates.  All candidates must pass the state licensing examination to assure competency.
Status: No action anticipated before November

House Bill 390: Scrap Metal Dealers
a. Prohibits a scrap metal dealer from purchasing or receiving copper pipe from any person other than a licensed plumber.
b. Prohibits a scrap metal dealer from purchasing or receiving an air conditioning unit from any person other than a licensed HVAC contractor.
c. Provides an exemption for the owner of the parcel where the material was removed.
OAR Position:  SUPPORT
The record number of abandoned and foreclosed homes in Ohio has led to an alarming amount of homes being illegally stripped of their materials.  Copper, aluminum, steel, brass and appliances are stolen from the abandoned homes and sold for scrap metal.  This criminal activity only exacerbates the foreclosure and blight problem we have in many of our cities.
Status: Pending in House Local Government

House Bill 32: Definition of Surveying
a. Clarifies Ohio law so that persons other than engineers and surveyors could continue to prepare plans, drawings and make various measurements for purposes of siting or designing an onsite waste water treatment system.
b. The legislation would continue to allow competent sewage system designers, installers and registered sanitarians to perform those functions as has previously been the case thus minimizing design costs for homeowners.
OAR Position:  SUPPORT
Rationale:  The Ohio Association of REALTORS has from the onset been very concerned about the impact the new septic rules would have on the cost to homeowners in our state.  The services of a professional surveyor will add greatly to the system cost and in many area of Ohio cause a significant delay securing a permit.  This issues has been debated by the agencies and parties involved for over a year without reaching any compromise on the matter.  Furthermore, the surveyors and engineers never mentioned the issue of surveying or siting waste water treatment systems despite the fact they have representatives on the commission.  Finally, the state board for Professional Engineers and Surveyors never discussed or challenged siting and/or surveying activities during the nearly ten year legislative process on HSTS issue.  Given the dynamics it has become necessary to resolve this issue through legislation.
Status: Passed Senate 26 – 3; House Concurs 96 – 0; Pending Governor’s Signature

House Bill 105: Termination of Lease for Victims of Domestic Violence
a. Would allow a tenant who is a victim of domestic violence to terminate a rental agreement or have the tenant’s name removed from the rental agreement under certain circumstances.
b. Would require a landlord of a tenant who is a victim of domestic violence or menacing to change the lock of the dwelling unit.
OAR Position:  MONITOR
Rationale: House Bill 105 seeks to provide a tenant that is a victim of domestic violence the opportunity to escape a violent and threatening situation by removing themselves from a rental agreement or termination of the lease with proper notification and legal documentation. A victim of domestic violence also has the right to request that the landlord change the lock on the property with proper notification and legal documentation at the tenant’s expense. While House Bill 105 places additional responsibility on the landlord, we believe that OAR should continue to work with the sponsor to ensure this piece of legislation provides the best avenue to ensure the safety of the victim and others that may be impacted by this unfortunate situation.
Status:  No action anticipated before November

House Bill 106: Termination of Lease for Military Service
a. Would enable members of the armed services and Ohio National Guard to terminate a rental agreement when the member receives military orders to deploy or for a permanent change of station.
OAR Position:  MONITOR
Rationale: Federal law already gives military personnel lease and rental agreement protections under the Service Members Civil Relief Act.  This federal act states that individuals who signed a rental agreement or lease before joining the armed services and entering into active duty may terminate the agreement early.  The law requires that you either receive orders for a permanent change of station or orders for active-duty service of at least 90 days. Since House Bill 106 for all intent and purposes mirrors federal law we see no reason why the Ohio law needs to be changed to provide protection for our brave men and women in the military. We will continue to monitor the legislation to determine if the sponsor seeks to go beyond the scope of the federal law.
Status: No action anticipated before November

House Bill 10: Voluntary Action Program
a. Provides tax credits to owners of real property that enters into the voluntary action program.
OAR Position:  SUPPORT
Rationale: If enacted House Bill 10 would provide tax benefits to an owner entering into the voluntary action program. The VAP encourages businesses to remediate and reuse property contaminated by hazardous materials or petroleum by providing various benefits after remediation occurs, including issuance of a covenant not to sue, which immunizes the property owner from civil liability.  HB 10 additionally offers a credit equal to 25% of the taxpayers expenditures made to conduct the remedial activities resulting in the covenant.   A second credit is also allowed for those who return the property to a productive use.  We believe these incentives in addition to the current VAP will provide a great benefit to owners of vacant commercial properties that may require remediation to attract new occupants.  For these reasons we ask that you support HB 10.
Status: No action anticipated before November

Senate Bill 50: Energy Tax Credits
a. Provides limited tax credits for landlords improving energy efficiency of residential rental property.
OAR Position:  SUPPORT
Rationale:  Senate Bill 50 authorizes a refundable income tax credit for landlords installing an energy efficient device or improvement in a residential rental property.  The bill allows for a credit equal to 15% of the device or improvement.  Eligible devices include major household appliances, HVAC systems, as well as windows and doors.  An energy efficient improvement is a permanent improvement that will generally reduce energy consumption, allow for a reduction in demand or support the production of clean renewable energy.  These credits will allow a landlord to make improvements to lower the operational costs of their properties while improving marketability to tenants.  For these reasons we ask that you support SB 50.
Status: No action anticipated before November

Senate Bill 43    Trust Account Interest (Formerly SB 286)
a. Would require broker’s trust account to earn interest and for the interest to be paid quarterly to the State to fund foreclosure prevention programs.
OAR Position: OPPOSE
Rationale: While we recognize that many of Ohio’s foreclosure prevention programs are in need of funding support due to the prolonged economic slowdown impacting our state, we do not believe this method should be implemented. Today’s market would not allow for the accumulation of interest or dividends in sufficient amounts to adequately fund these efforts. Additionally, to put the onus on the broker to constantly monitor these accounts to ensure the quarterly reporting and forwarding of all interest and dividends to the state is an unfair burden on Ohio’s real estate companies. Thus, the opposition to SB 43.
Status: Pending in Senate Financial Institutions Committee

Internet Recorder’s Fee
a. Would permit the office of the County Recorder to place public documents housed within the County Recorder’s office on their website so anyone can access the information 24 hours a day, seven days a week.
b. Would require the County Recorders to charge a single user fee of $1 per printed page and also establish a “commercial user” fee for those entities (i.e., Title Companies) that print out a large amount of documents from the website.
OAR Position:  MONITOR
Rationale:  Roughly 10-15 County Recorders across Ohio have their documents accessible to the public via their website.  Only a few of these counties allow an individual or commercial user the ability to print out a document via their home or office and legally utilize the document. The legislation drafted by the County Recorders Association would allow all offices of the County Recorder to place their files online for public access and charge a single user fee and commercial fee. While this bill impacts our association, the steering committee felt it necessary for staff to have more discussion with the Title companies, banks, etc. prior to taking apposition on the bill. We do not want to support any new fee or increase in a fee without working with the businesses that are directly impacted by this bill.
Status: No action anticipated before November